71st OREGON LEGISLATIVE ASSEMBLY--2001 Regular Session
NOTE: Matter within { + braces and plus signs + } in an
amended section is new. Matter within { - braces and minus
signs - } is existing law to be omitted. New sections are within
{ + braces and plus signs + } .
LC 3536
A-Engrossed
Senate Bill 753
Ordered by the Senate April 2
Including Senate Amendments dated April 2
Sponsored by Senators MESSERLE, METSGER
SUMMARY
The following summary is not prepared by the sponsors of the
measure and is not a part of the body thereof subject to
consideration by the Legislative Assembly. It is an editor's
brief statement of the essential features of the measure.
Establishes Short Line Credit Premium { - Fund - } { +
Account + }. Authorizes Department of Transportation to
{ - make loans - } { + provide infrastructure assistance + }
from { - fund - } { + account + } to short line railroads
{ - for specified purposes - } . { + Specifies criteria for
giving priority to projects. + }
Appropriates moneys to department for purposes of this Act.
{ +
Declares emergency, effective July 1, 2001. + }
A BILL FOR AN ACT
Relating to short line railroads; appropriating money; and
declaring an emergency.
Be It Enacted by the People of the State of Oregon: + }
SECTION 1. { + Sections 2 to 4 of this 2001 Act are added to
and made a part of ORS 367.010 to 367.060. + }
SECTION 2. { + The Legislative Assembly finds that:
(1) A well developed system of short line railroads is critical
to the economic growth and stability of Oregon;
(2) Traditional funding techniques such as grant programs are
unable to keep pace with infrastructure investment in Oregon due
to budgetary constraints on state government;
(3) Short line railroads serve the public good and would
benefit from the provision of public assistance;
(4) New investment capital can be attracted to infrastructure
projects that are capable of generating their own revenue stream
through dedicated funding sources;
(5) A state credit program can complement existing funding
sources by leveraging resources from nonstate sources;
(6) The state could mitigate the need to expand highways by
encouraging the development and sustainability of a statewide
system of short line railroads; and
(7) Newly established state credit programs are most
effectively delivered when they augment and utilize the resources
of previously established state credit programs. + }
SECTION 3. { + As used in this section and section 4 of this
2001 Act:
(1) 'Credit premium' means the amount required to be paid to
the United States Secretary of Transportation before disbursement
of a federal loan under RRIFP.
(2) 'RRIFP' means the Railroad Rehabilitation and Improvement
Financing Program, 49 C.F.R. 260 et seq.
(3) 'Short line railroad' means a class II or class III
railroad as defined in 49 C.F.R. part 1201. + }
SECTION 4. { + (1) The Short Line Credit Premium Account is
established as an account in the Oregon Transportation
Infrastructure Fund. Moneys in the Short Line Credit Premium
Account are continuously appropriated to the Department of
Transportation for the purpose of carrying out the provisions of
this section.
(2) A short line railroad may apply to the Department of
Transportation for infrastructure assistance in a manner
determined by the department by rule.
(3) In evaluating applications for infrastructure assistance
under this section, the department shall give priority to
projects that:
(a) Enhance public safety;
(b) Enhance the environment;
(c) Appear creditworthy, providing financially secure sources
of repayment to secure a federal credit instrument;
(d) Promote rural economic development;
(e) Reduce demand for expansion of highway capacity;
(f) Enable Oregon companies to be more competitive in regional,
national and international markets;
(g) Preserve or enhance rail or intermodal service to small
communities or rural areas; and
(h) Will be operated by a short line railroad with federal
credit assistance under the RRIFP.
(4) If a short line railroad receives infrastructure assistance
under this section for a project for which federal credit
assistance was received under RRIFP, and if all or part of the
credit premium is returned to the railroad by the federal
government, the railroad shall remit to the department the amount
of moneys returned to the railroad.
(5) All moneys remitted to the department under subsection (4)
of this section shall be deposited by the department into the
Short Line Credit Premium Account. + }
SECTION 5. { + The Department of Transportation shall report
to the Seventy-second Legislative Assembly on the status of the
short line railroad infrastructure assistance program developed
under section 4 of this 2001 Act. + }
SECTION 6. { + (1) In addition to and not in lieu of any other
appropriation, there is appropriated to the Department of
Transportation, for the biennium beginning July 1, 2001, out of
the General Fund, the amount of $2,000,000, to be deposited in
the the Short Line Credit Premium Account established by section
4 of this 2001 Act.
(2) Up to five percent of the moneys appropriated under this
section may be used by the department for administrative expenses
of the short line railroad infrastructure assistance program
developed under section 4 of this 2001 Act. + }
SECTION 7. { + This 2001 Act being necessary for the immediate
preservation of the public peace, health and safety, an emergency
is declared to exist, and this 2001 Act takes effect July 1,
2001. + }
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